Employment MC practice
A marginally attached worker is a person who ________. A. works part time for economic reasons B. works part time for noneconomic reasons C. doesn't work, is available and willing to work, but hasn't looked for job recently D. has no job but would like one and has gone back to school to retrain
Answer C is essentially the definition of a marginally attached worker.
. The economy is at full employment when all unemployment is ________. A. structural B. cyclical C. structural and cyclical D. structural and frictional
Answer D is the definition of when the economy is at full employment
If the BLS included all marginally attached workers as being unemployed, the ________ would be __________. A. unemployment rate; higher B. labor force; unchanged C. labor force participation rate; lower D. unemployment rate; lower
Answer: A Marginally attached workers are unemployed, so the unemployment rate would be higher.
Potential GDP is the value of real GDP when ______. A. the unemployment rate equals the natural unemployment rate B. there is no frictional unemployment C. there is no structural unemployment D. the unemployment rate is zero
Answer: A When real GDP equals potential GDP, the unemployment rate equals the natural unemployment rate.
When the unemployment rate _________ the natural unemployment rate, real GDP is _________ potential GDP and the output gap is _________. A. exceeds; below; negative B. is below; below; negative C. exceeds; above; positive D. is below; above; negative
Answer: A When the unemployment rate exceeds the natural unemployment rate, the economy is in a recession with real GDP is less than potential GDP so the output gap is negative.
When the economy goes into recession, the biggest increase in unemployment is _________. A. structural because jobs are lost in most states B. cyclical because jobs are lost in many industries as they cut production C. frictional because the creation of jobs slows D. the combination of structural and frictional as few new jobs are created.
Answer: B Cyclical unemployment is the unemployment resulting from a recession
. The BLS count Jody as being unemployed if she _______. A. had a job last month but not this month B. doesn't have a job because the U.S. factory where she worked cannot compete with cheap Chinese imports C. wants a job and looked for a job last year but has now stopped looking D. wants a job and is willing to take a job but after searching last week cannot find a job
Answer: D To be counted as unemployed, a person must be without a job, available for work, and made specific efforts to find a job within the past 4 weeks.
